Message #22 From:
NewsBot Date: March 20, 2007 06:47:00 AM
SPRX News SpectRx, Inc. Signs Letter of Intent to Sell SimpleChoice Insulin Infusion Set Business
NORCROSS, Ga.--(BUSINESS WIRE)--SpectRx, Inc. (OTCBB: SPRX) today announced it has signed a binding no shop agreement and a non-binding letter of intent to sell its non-core SimpleChoice® insulin pump infusion set business. The agreement was signed with one of several parties that have expressed interest in purchasing or licensing the SimpleChoice product portfolio.
The Company expects to complete a transaction in 2007. The planned sale of the business is part of a previously announced reorganization of the company around its proprietary non-invasive cancer detection technology.
“As we announced last week, it is our intention to sell, or out license, certain assets of the company to provide additional non-dilutive capital to help bring our painless cervical cancer test to market,” said Mark A. Samuels chairman and CEO of SpectRx, Inc. “The sale of the SimpleChoice business is the first of several planned actions to compete the reorganization of the company.”
SimpleChoice® brand products are for use with insulin pumps used by people with diabetes to control their blood glucose levels. The products include disposable infusion sets and insulin reservoirs.
About SpectRx
SpectRx, Inc. (OTCBB: SPRX) is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to quickly eliminate false positive Pap and HPV results and discover cervical disease missed by existing tests. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately.
The SpectRx non-invasive cervical cancer detection test uses light to scan the cervix for disease. The test is designed to be painless and to provide results immediately. It is also designed to be performed by a technician, freeing the physician to see other patients. The system consists of a base unit and a single-patient-use disposable calibration and patient interface. The test is currently undergoing the U.S. Food and Drug Administration pivotal clinical trial necessary to apply for regulatory approval. The test could reduce unnecessary cervical biopsies by 55%, while accurately detecting disease, according to results of a study published in the January 2007 edition of the Journal of Lower Genital Tract Disease.
The SpectRx Non-invasive Cervical Cancer Detection Device is an investigational device and is limited by federal law to investigational use.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. A number of the matters and subject areas discussed in this news release that are not historical or current facts deal with potential future circumstances and developments. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally and also may materially differ from SpectRx’s actual future experience involving any of or more of such matters and subject areas. Such risks and uncertainties include: the early stage of products in development, the uncertainty of market acceptance of products, the uncertainty of development or effectiveness of distribution channels, the intense competition in the medical device industry, the uncertainty of capital to develop products, the uncertainty of regulatory approval of products, dependence on licensed intellectual property, as well as those that are more fully described from time to time under the heading “Risk Factors” in SpectRx’s reports filed with the SEC, including SpectRx’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005, as amended, and subsequent quarterly reports.
